IDEAS home Printed from https://ideas.repec.org/p/ecr/col022/3910.html
   My bibliography  Save this paper

MERCOSUR in transition: macroeconomic perspectives

Author

Listed:
  • Heymann, Daniel
  • Ramos, Adrián

Abstract

The recovery of the economies of MERCOSUR, and the disturbances that the recent crises generated in the region have motivated reconsideration of the medium term prospects of the integration project. This paper tries to contribute to this activity with a brief analysis of regional macroeconomic interactions, and a discussion in broad terms of incentives and restrictions for macroeconomic cooperation in the specific conditions of the region. The themes that play through the discussion are that (i) the lack of a shared concrete perspective about the role of MERCOSUR for the growth of the national economies has limited the perception of the integration project as a valuable and permanent economic undertaking, which would place individual policies in a context of repeated interactions within a partnership; (ii) macroeconomic spillovers in the region have mainly originated in large fluctuations in national economies associated with crises where the sustainability of past observed trends was put into question; (iii) on several occasions, the countries of MERCOSUR have shown substantial differences in their approach to economic policies, including prominently the management of key macroeconomic instruments; (iv) uncertainties about how (and why) the integration scheme would evolve, and doubts about the incentives and reliability of the partners in their macroeconomic management have induced centrifugal forces, especially in times of economic turbulence; (v) in order to become a progressive project it seems that MERCOSUR would need to go about developing a set of shared views about the growth strategies of the economies, and the part of the regional agreement in them, which would proceed pari passu with advances in macroeconomic cooperation; (vi) these would include a non-trivial activity of searching for a certain convergence of "macromodels" of analysis and policy-making (not equivalent to uniformity of policies) and a routine of consultations that would facilitate implementing common actions when circumstances require.""

Suggested Citation

  • Heymann, Daniel & Ramos, Adrián, 2005. "MERCOSUR in transition: macroeconomic perspectives," Documentos de Proyectos 3910, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    • Handle: RePEc:ecr:col022:3910
    Note: Includes bibliography
    as

    Download full text from publisher

    File URL: http://repositorio.cepal.org/handle/11362/3910
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Guillermo A. Calvo & Carmen M. Reinhart, 2002. "Fear of Floating," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(2), pages 379-408.
    2. Ocampo, José Antonio, 1999. "Reforming the international financial architecture: consensus and divergence," Series Históricas 7459, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    3. Carrera, Jorge Eduardo & Cicowiez, Martín & Lacunza, Hernán & Saavedra, Marcelo, 2005. "Interdependencia y regímenes cambiarios en Mercosur: un modelo macroeconómico de equilibrio general computado para su medición [Interdependence under different exchange rate regimes in the Mercosur," MPRA Paper 7845, University Library of Munich, Germany, revised 2005.
    4. Axel Leijonhufvud (ed.), 2001. "Monetary Theory as a Basis for Monetary Policy," International Economic Association Series, Palgrave Macmillan, number 978-1-4039-3961-6, November.
    5. Ernesto Talvi & Alfonso S. Bevilaqua & Marcelo Catena, 2001. "Integration, Interdependence, and Regional Goods: An Application to Mercosur," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Fall 2001), pages 153-208, August.
    6. Fernández-Arias, Eduardo & Hausmann, Ricardo & Stein, Ernesto H., 2001. "Courting FDI: is competition bad?," Sede de la CEPAL en Santiago (Estudios e Investigaciones) 34827, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    7. Satyajit Chatterjee & Dean Corbae, 2003. "On the welfare gains of eliminating a small likelihood of economic crises: A case for stabilization policies?," Working Papers 03-20, Federal Reserve Bank of Philadelphia.
    8. Peter Mooslechner & Martin Schuerz, 1999. "International Macroeconomic Policy Coordination: Any Lessons for EMU? A Selective Survey of the Literature," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 26(3), pages 171-199, September.
    9. Ben S. Bernanke & Frederic S. Mishkin, 1997. "Inflation Targeting: A New Framework for Monetary Policy?," Journal of Economic Perspectives, American Economic Association, vol. 11(2), pages 97-116, Spring.
    10. Agosin, Manuel R., 2001. "Strengthening regional financial cooperation," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    11. Sebastian Galiani & Daniel Heymann & Mariano Tommasi, 2003. "Great Expectations and Hard Times: The Argentine Convertibility Plan," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Spring 20), pages 109-160, January.
    12. Diego Moccero & Carlos Winograd, 2005. "Macroeconomic Coordination Policies: Why and How?: From Europe to MERCOSUR," IDB Publications (Working Papers) 19358, Inter-American Development Bank.
    13. Moccero, Diego & Winograd, Carlos, 2005. "Macroeconomic Coordination Policies: Why and How?: From Europe to MERCOSUR," IDB Publications (Working Papers) 2934, Inter-American Development Bank.
    14. -, 2004. "Evaluación del desempeño y aportes para un rediseño del MERCOSUR: una perspectiva desde los sectores productivos argentinos," Oficina de la CEPAL en Buenos Aires (Estudios e Investigaciones) 28464, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Libman, Emiliano, 2017. "Asymmetric Monetary and Exchange Rate Policies in Latin America," MPRA Paper 78864, University Library of Munich, Germany.
    2. Hiroyuki Taguchi & Woong-Ki Sohn, 2014. "Inflation Targeting and the Pass-through Rate in East Asian Economies," Asian Economic Journal, East Asian Economic Association, vol. 28(2), pages 139-159, June.
    3. Kadria, Mohamed & Ben Aissa, Mohamed Safouane, 2016. "Inflation targeting and public deficit in emerging countries: A time varying treatment effect approach," Economic Modelling, Elsevier, vol. 52(PA), pages 108-114.
    4. Levieuge, Grégory & Lucotte, Yannick & Pradines-Jobet, Florian, 2021. "The cost of banking crises: Does the policy framework matter?," Journal of International Money and Finance, Elsevier, vol. 110(C).
    5. Nikola Fabris & Milena Lazić, 2022. "Evaluating the Role of the Exchange Rate in Monetary Policy Reaction Function of Advanced and Emerging Market Economies," Journal of Central Banking Theory and Practice, Central bank of Montenegro, vol. 11(2), pages 77-96.
    6. Hippolyte W. Balima & Eric G. Kilama & Rene Tapsoba, 2017. "Settling the Inflation Targeting Debate: Lights from a Meta-Regression Analysis," IMF Working Papers 2017/213, International Monetary Fund.
    7. Hiroyuki Taguchi & Chizuru Kato, 2011. "Assessing the performance of inflation targeting in East Asian economies," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 25(1), pages 93-102, May.
    8. Olano MAKHUBELA, 2004. "Does South Africa Suffer from the ‘Fear of Float’ Syndrome? An Analysis of the Efficacy and Challenges of a Managed Floating Exchange Rate Regime with Financial Integration," Working Papers 138, Department of Economics, SOAS University of London, UK.
    9. Birdsall, Nancy & de la Torre, Augusto & Caicedo, Felipe Valencia, 2010. "The Washington consensus : assessing a damaged brand," Policy Research Working Paper Series 5316, The World Bank.
    10. Vittorio Corbo & Klaus Schmidt-Hebbel, 2001. "Inflation Targeting in Latin America," Working Papers Central Bank of Chile 105, Central Bank of Chile.
    11. repec:udc:esteco:v:44:y:2017:i:2:p:97-124 is not listed on IDEAS
    12. Antonia López-Villavicencio & Marc Pourroy, 2017. "IT Countries: A Breed Apart? the case of Exchange Rate Pass-Through," Working Papers halshs-01614817, HAL.
    13. Hiroyuki Taguchi & Mesa Wanasilp, 2018. "Monetary Policy Rule and its Performance under Inflation Targeting in Thailand," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 5(1), pages 19-28.
    14. Etro, Federico, 2017. "Research in economics and macroeconomics," Research in Economics, Elsevier, vol. 71(3), pages 373-383.
    15. Chen Wang, 2016. "Does Inflation Targeting Work Well? Evidence from CEE Countries," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 66(3), pages 375-392, September.
    16. Julian Pérez Amaya, 2006. "Evaluación de Reglas de Tasa de Interés en un Modelo de Economía Pequeña y Abierta," Borradores de Economia 385, Banco de la Republica de Colombia.
    17. Libman, Emiliano, 2018. "Asymmetric monetary and exchange-rate policies in Latin American countries that use inflation targeting," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    18. Ismailov, Shakhzod & Kakinaka, Makoto & Miyamoto, Hiroaki, 2016. "Choice of inflation targeting: Some international evidence," The North American Journal of Economics and Finance, Elsevier, vol. 36(C), pages 350-369.
    19. Julián Pérez Amaya, 2006. "Evaluación De Reglas De Tasa De Interés En Un Modelo De Economía Pequeña Y Abierta," Borradores de Economia 2638, Banco de la Republica.
    20. Pham, Thu Anh Thi & Nguyen, Thong Trung & Nasir, Muhammad Ali & Duc Huynh, Toan Luu, 2023. "Exchange rate pass-through: A comparative analysis of inflation targeting & non-targeting ASEAN-5 countries," The Quarterly Review of Economics and Finance, Elsevier, vol. 87(C), pages 158-167.
    21. Garcia Rocabado, Daniel, 2010. "The road to monetary union in Latin America: An EMS-type fixed exchange rate system as an intermediate step," W.E.P. - Würzburg Economic Papers 85, University of Würzburg, Department of Economics.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ecr:col022:3910. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Biblioteca CEPAL (email available below). General contact details of provider: https://edirc.repec.org/data/eclaccl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.